David Cameron has been urged by his MPs to use the emergency EU summit at the end of the month to demand cuts to the European budget as the price of Britain’s co-operation in resolving the eurozone crisis.

Leaders from the 27 European countries will gather two weeks today in Brussels to discuss further integration of the single currency’s banking system. They will be asked to agree a preliminary plan, with more concrete proposals to be prepared for a December gathering.

The Prime Minister has made clear that Britain wants a banking union to take place, but without UK involvement, and will demand safeguards to protect London’s financial services industry from the single market.